New York: An Indian-origin telecom entrepreneur, Bankim Brahmbhatt, has been accused of orchestrating a “breathtaking” $500 million loan fraud that has rocked the private credit market and ensnared investors linked to BlackRock-acquired HPS Investment Partners, according to a Hindustan Times report.
Brahmbhatt, who runs the Bankai Group, owns two global telecom services firms—Broadband Telecom and Bridgevoice—which allegedly stood at the centre of a complex web of financing deals involving shell entities like Carriox Capital and BB Capital SPV. Lenders have accused him of using fake invoices and fabricated customer receivables as collateral to raise hundreds of millions in loans.
The main investor in these loans is HPS Investment Partners, which was recently acquired by asset management giant BlackRock, along with other lenders such as BNP Paribas. The alleged fraud came to light when lenders discovered that every customer email provided by Brahmbhatt’s firms was fabricated, and that the supposed client contracts dated back to as early as 2018 were falsified.
According to the report, funds raised through these fraudulent loans were allegedly transferred to offshore accounts in India and Mauritius. Following the revelations, Broadband Telecom and Bridgevoice filed for bankruptcy in August 2025, while Brahmbhatt himself filed for personal Chapter 11 bankruptcy on August 12.
Although he has denied the allegations, Brahmbhatt’s New York office was found locked and vacant in July, and reports suggest he may have relocated to India. Luxury cars were spotted outside his listed US residence, raising questions about asset diversion.
The alleged scam has sent shockwaves through the private credit industry, which has rapidly expanded in recent years as investors sought higher returns in riskier markets. Financial experts say the case highlights serious gaps in due diligence when loans are backed by unverifiable collateral such as customer receivables.
Authorities and lenders are now attempting to trace the flow of funds and recover assets spread across multiple jurisdictions. The investigation continues into what has been described as one of the largest and most audacious frauds to hit the private lending market in recent years.
